CBD Business Opportunities in 2023
Perhaps the most important thing investors and entrepreneurs consider before entering a new market or business venture is what the future holds for their investment. Some even spend months considering all relevant factors to ensure they aren’t throwing their money into a dead venture.
The very same applies to the CBD industry. Both people already in the market and those still considering entering it have questions about the future of the industry.
Is it bleak? Is it promising? Let’s find out!
Aside from that, we will also consider the top CBD business opportunities entrepreneurs can pursue in the CBD industry.
CBD: The Story so Far
The CBD industry is not an old one at all – at least, legally speaking. Before the 2018 Farm Bill, CBD and its products were federally illegal. Even after then, many states have still not legalized CBD products.
The reason for this is not far-fetched. The negative PR on marijuana and its products have spilled heavily on CBD products, despite containing only extremely tiny amounts of THC. Even in the states that have legalized the industry, many still classify CBD products as a grey area.
This is further complicated by social media platforms which have been very slow in approving the advertisement of CBD products. Some still don’t allow them to be advertised.
However, while it seems all dark and gloomy, the CBD industry has only gone and thrived. The industry is expanding, and sales are increasing. Just two years after the 2018 Farm Bill, the CBD industry hit $4.6 billion. 2021 also saw an uptick in the general market value, with sales averaging a whopping $3.5 billion.
Let’s summarize the story so far, then. The CBD industry has faced several adversities and challenges; however, the industry still continues to thrive and hit record numbers.
What Does the Future Hold for the CBD Industry
Despite the recent success of the CBD industry, many are still not fully bought on the industry. And, to be honest, we cannot fault them. It is only natural to confirm if an industry can stand the tricky test of time before delving into it. That brings us to the million-dollar question, “what does the future hold?”
Before we answer that, you should know that we aren’t clairvoyants or psychics. No one can tell with all certainty what the future of an industry will be. However, we have every reason to believe the future is bright with current trends and recent developments.
And when we say future, we aren’t talking about ten years; no. According to Forbes, the CBD industry is expected to cross the $20 billion mark by 2025. But let’s not even go that far. Many experts have dubbed 2022 the beginning of a new era for CBD.
It’s not hard to see why that kind of projection has been made, too, as CBD business opportunities are piling, more products are being introduced into the market, and the less-than-optimal PR around CBD products is fast fading.
The health and wellness industry, in particular, is one that never gets boring. There are always new products and activities, and the last few years have been dominated by yoga, meditation, and exercises. There seems to be a budding usurper of these in CBD, though, and it seems to be happening soon. Yes, even as soon as 2022.
Again, we cannot say for sure what this year will bring, but a new era may be well around the corner from our expertise and experience in the CBD industry.
Business Trends in the CBD Industry for 2022
We have made some pretty bold claims about how we expect the CBD industry to bud in 2022. These are not just claims we have made up out of nothing; instead, they have been informed by the business trends in the CBD industry for 2022. The trends are as follows:
1. Increased Legalization of CBD
Despite the 2018 Farm Bill federally legalizing CBD products, states are taking their time in fully legalizing CBD products. Fortunately for potential entrepreneurs, that is expected to change before long. Many states, including Connecticut, Minnesota, New York, and New Jersey, are expected to legalize CBD products soon. By soon, we mean as close as May 2022.
Some other states have also recently given the green light to the legalization of CBD products for medical use. They include Georgia, Minnesota, Illinois, and Hawaii.
The support for cannabis-based products is booming, increasing the chances of full legalization in many states. By implication, CBD products will also be fully legalized in these states, further increasing CBD business opportunities.
2. Expansion of the CBD Industry and Market
Since 2018, the CBD industry has consistently increased in size every year. There was an average sales value of $3.5 billion in 2021, which is expected to triple this year.
This expansion in the industry can be attributed to many different reasons, with one of the most important being the increase in CBD business opportunities.
If there are more business opportunities in any industry, it is only natural that its market value will increase. This will draw more investors, further increasing this market value, continuing the cycle. The CBD industry appears to be strongly following suit with the market fast expanding.
Aside from increased CBD business opportunities, the health benefits of CBD for humans and pets are becoming obvious.
We cannot possibly state all the reasons for the expansion of the CBD market, but we can say for sure that the market is expanding. That’s good news as far as investments go.
3. Increased Competition
Well, it is only natural, isn’t it?
Investors are put on alert whenever a market expands and try to jump at possible opportunities as fast as possible. There’s a popular term for it – FOMO, an abbreviation for Fear Of Missing Out.
While more investors typically indicate an increase in market value, it also means increased competition. Therefore, if the CBD market keeps increasing – it almost certainly will – the competition for the available CBD business opportunities will also increase.
We are not trying to discourage or scare you away, but you need to be at the top of your game to have a real chance of recording huge successes in the industry.
4. Wide Variety of CBD Products
The variety of CBD products available has broadened over the last few years. There used to be a time when CBD products for humans were restricted to oils and capsules, but how things have changed.
For starters, CBD products are now widely available for animals, especially dogs and cats. This alone is a game-changer as different types of products can be made for animals.
Also, there is a variety of products available for humans. Now, there are creams, lotions, salves, and even products for baths.
The wider this variety gets, the more CBD business opportunities will be available for potential investors.
5. More Information about CBD
People are starting to realize the health benefits of CBD products. We have to say here that many of these assumed benefits are not confirmed by the FDA. In fact, the FDA frowns against making categorical health claims on labels of CBD products.
However, many have documented these products to be helpful in pain relief, mental health disorder symptoms, neuroprotective properties, heart benefits, sleep improvement, etc.
People are becoming increasingly aware of these benefits, driving the demand for CBD products. In the same vein, pet owners are becoming more aware of the benefits of these products for their pets. Some vets have even started recommending it.
This information is mostly online through blogs and on social media. So we have to praise blogs, especially SEO-optimized ones. This is why we always encourage CBD investors to explore this area, and we, at Digital octane, can help you out with that.
There seems to be a long way before the FDA fully approves CBD products and their health claims, but the foundation looks quite solid.
6. Research on New CBD Products and Chemicals
The research on CBD products and compounds now is not extensive. Yes, there are a few studies here and there, but still not enough. However, that is changing, with more studies being conducted on CBD products and compounds.
Speaking of compounds, there are several in the cannabis plant. Note that CBD and THC are just two of the compounds in the cannabis plant. Research is currently ongoing on the other chemicals in the plant, like CBN, CBG, THCV, Limonene, Delta-8-THC, etc.
The ultimate goal is to find similar or even more valuable compounds than CBD. Also, some of these compounds may complement CBD in many CBD products.
CBD Business Opportunities in 2022
There has been a recent expansion in the CBD market, which has been followed by a concurrent increase in the available CBD business opportunities. There are tons of them, but we have selected eight of the best you can try out in 2022.
1. CBD Blogs
Seriously, we cannot hype this enough. Because of the CBD restrictions on most social media platforms, most people get their information from online blogs. These blogs don’t just serve the purpose of informing people about CBD products, though. Many blog owners and managers market products on their blogs, with the affiliate marketing field gaining a lot of traction of late.
What’s more, is that these blogs are not hard to set up and manage. With fresh content and ideas, the chances of success are high. However, essential details, like SEO, cannot be overlooked. If you’re not that savvy with words, you can employ the services of a blog manager and content creator.
Another one of the up-and-coming CBD business opportunities is podcasts. You most likely know how podcasts operate. Like blogs, you cannot be bereft of ideas with podcasts. Luckily, ideas are not hard to find.
Because of the increasing awareness of the benefits of CBD products, many health experts and vets will be keen to speak on the advertised benefits of CBD.
Additionally, the CBD podcast space is still relatively green, implying that the competition is not as high, which is always good news to investors.
3. CBD Product Sales
This is perhaps the most conventional of all the CBD business opportunities. But it’s unmistakably still one of the best ways of earning in the CBD industry.
Basically, you manufacture CBD products and sell them. However, if you don’t actually want to manufacture the products yourself, for whatever reason, you can enter into an agreement with a manufacturing company. This agreement will allow them to manufacture the products but under your brand.
Because of the wide variety of products, finding one to market shouldn’t be a bother, either for humans or for pets.
4. CBD Marketing
Here, you don’t need to manufacture or even have the products; you just market them. You help sellers sell their products, and you get a cut of the proceeds from the sales you make.
Marketing can be in different forms. Some market on their social media pages, while some use blogs. There are other marketing strategies, but those two are the commonest. Whatever the route you choose to ply, you can earn very reasonably without much work.
5. Graphic Design
If you think this is very generic, you’re absolutely correct. Graphic design is a generic field, and it applies to all industries. But what you may not know is how appreciated graphic designers are in the CBD industry.
Because there are restrictions on advertising, sellers utilize several means to push sales. This is where graphic designs come into play. By incorporating SEO-optimized content into the graphic design, sellers can expand the reach of their advertising without getting into too much trouble.
6. Product Review
Product review is an exciting field to consider for people who don’t want to get into manufacturing, marketing, or selling. The field is just as it sounds – products review.
You can write proposals to a company to review their products for them and publish them on your blog or any other online space. For those that agree, you review their product, and if your blog is reputable enough, you earn very well.
7. Social Media Manager
There are huge restrictions on advertising CBD products on social media platforms, but there are ways around these restrictions. We are not promoting any illegal or fraudulent act, but with the right approach, one can work around the rules and maximize advertising.
This process is usually tricky as any mistake can get your account banned. This is where a good social media manager comes into play. They will be expected to push out engaging and interaction-driven content without breaking the guidelines of the particular social media platform.
8. CBD Distributor
A CBD Distributor distributes CBD products to wholesalers, retailers, and, in some cases, even the final consumer. This CBD business opportunity is relatively risk-free, as the distributor doesn’t actually own the products. The implication of this is the distributor isn’t affected by any blowback from sub-par products. Admittedly, the profit isn’t as much as many of the other ventures on here, but the risks are minimal, and the business is cost-efficient.
The CBD industry has been steadily rising since its federal legalization in 2018. Despite many states still yet to fully legalize CBD products and social media platforms restricting adverts, the industry has recorded unprecedented growth and expansion. Moreover, considering several business trends, we can say this growth will continue, making the industry an excellent option for investors.
There are several CBD business opportunities in 2023, and we have outlined some of them. With dedication, quality, and consistency, investors can eat from the large dining table that is the CBD industry.
However, it’s not as straightforward as just jumping into these fields and business opportunities. Because of the increasing competition, you need to improve your craft to stand a chance of competing. This is where we at Digital Octane come into play.
We are committed to helping small and starting CBD businesses grow and flourish, especially in the online and SEO space. We are quality, and that’s not just us boasting. You just message us today, and we’ll prove it!
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